*6.2.1 Green banking and Maqasid Shariah*

The Shariah's greatest intentions rests within the concepts of thoughtfulness as well as administration, which aim to eliminate partiality, initiate fairness, as well as abate hardship through encouraging support as well as joint provision within the family and society in general. Shariah's objective as well as holistic value in accordance with Islamic scholars has commonly known to be Maslahah and Maqasid; both notions are entrenched by comprehending the public interest. Scholars make use of Maslahah and Maqasid nearly conversely as both the concepts often indicate the same meaning [30].

Muhammad bin Ibrahim, ex-governor of the Central Bank of Malaysia, shared his opinion by mentioning to support green technology towards a diverse as well as spirited financing ecosystem for green undertakings Islamic finance has great potential. Additionally, he articulated citing from the holy Quran (surah Al-Fajr: 11–14) that it is human's liability to maintain the atmosphere as well as natural possessions that Allah has made on this earth, counting the various forms of life. Every Muslim will be rewarded by Allah (swt) for contributing towards enlightening greenery. A hadith in Musnad Ahmad by Prophet Muhammad (pbuh), it is cited that the Almighty will recompense those who take care of the neighboring environment. Promoting preservation of natural resources and respecting every living being are the fundamental connection between the environment and mankind. In Surah

Al-Rum: 41, Allah (swt) the Almighty cautions human beings by announcing that unembellished destruction of the sea and land would come upon those who abuse the environment; therefore, not being able to treat the environment appropriately would be harmful. Hence, for ensuring ecological sustainability, it is crucial for everyone to count Islamic banks to resolutely play their roles. The governor debates that achieving environmentally friendly sustainability is the liability of everybody and the banking industry must do its part [32].

Islamic teaching is always compatible with the benefit of ummah. The concept of sustainable development, which is a greatly discussed matter in modern time, is looking for the way out to guarantee development in a sustained way which is only likely to be achieved by adhering to the divine law of ethics. To conclude, Islamic banks are focusing on achieving Maqasid Shariah so does the green banking. By analyzing green banking policy and guidelines of Bangladesh, it is ascertained that green banking aims to also protect life, family, and property [33, 34]. Moreover, green business activities also resemble to attaining Maqasid Shariah [35].

### *6.2.2 SDGs and Maqasid Shariah*

The idea of a sustainable development model that is connected to religious values stands somewhat in opposition to the current model, which reflects a separation of religious ideology and public policy making. The sustainable development discourse has, however, acknowledged that the three pillars of sustainable development need to be completed by an ethical dimension at the level of popular values. The World Summit on Sustainable Development in Johannesburg (2002) added a short paragraph 6 to its Programme of Action: "We acknowledge the importance of ethics for sustainable development and, therefore, emphasize the need to consider ethics in the implementation of Agenda 21" [36]. Therefore, there is convergence of SDGs in general and the intention of climate management with the Maqasid Shariah. Maqasid Shariah should drive Islamic banking and finance is self-evident. Islamic economists invoke the framework of Maqasid Shariah to chart a new trajectory for Islamic finance. While many classical and contemporary Islamic scholars have discussed and elaborated upon the Maqasid Shariah framework, the Islamic Research and Training Institute (IRTI) has undertaken pioneering research that underlines the fact that many SDGs clearly align with Maqasid Shariah. The Maqasid Shariah-driven Islamic finance, therefore, would work towards achieving the SDGs. There is a growing realization that Islamic financial institutions should align their goals with the SDGs so that they would be able to protect and promote Maqasid Shariah. The SDGs are 17 in numbers. The next section will try to find the convergence SDGs and the MS framework prescribed by Imam al-Ghazali.

The UN Sustainable Development Summit was held in New York from September 25 to 27, 2015, for the adoption of an ambitious, bold, and universal sustainable development agenda that will end poverty and promote prosperity by 2030 while addressing the environment. The summit outcome document, entitled "Transforming our World: The 2030 Agenda for Sustainable Development," was agreed on by the 193 member states of the United Nations and includes 17 sustainable development goals and 169 targets. The 17 goals are No. 1 no poverty; No. 2 zero hunger; No. 3 good health and well-being; No. 4 quality education; No. 5 gender equality; No. 6 clean water and sanitation; No. 7 affordable and clean energy; No. 8 decent work and economic growth; No. 9 industry innovation and infrastructure; No. 10 reduced inequality; No. 11 sustainable cities and communities; No. 12 responsible consumption and production; No. 13 climate action; No. 14 life below water; No. 15 life on land; No. 16 peace, justice, and strong institutions; and No. 17 partnerships for the goals.

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*Green Banking*

Maqasid Shariah.

**7. Conclusion**

*DOI: http://dx.doi.org/10.5772/intechopen.93294*

SDG 8, and a social safety net, SDGs 1 and 3 [37].

To appreciate the SDGs understanding, five Ps are vital; these are people, planet,

prosperity, peace, and partnership. These five Ps are considered as elements of SDGs, and among them three are the pillars of SD—people, planet, and prosperity. The 2030 Agenda is indivisible; therefore, countries should avoid cherry picking goals and carefully assess the trade-offs across goals/targets. SDGs are very comprehensive, designed to achieve universal goals, agreed by world community in general, and have no direct conflicts with Islamic percepts. Maqasid Shariah is also very systematic and attempts to address human welfare and well-being in a comprehensive and organized way. The following paragraph is trying to map SDGs into

One of the first pillars of Imam al-Ghazali's Maqasid Shariah framework is protection of faith, and SDG goals 1, 2, 3, 6, and 10 focus on reducing vulnerability which in turn is believed to help strengthen their faith. The second pillar is protection of life (nafs), and goals 2, 3, 6, 8, and 11 in ensure healthy lives and promoting well-being for sustainable development. The third pillar is protection of progeny (nasl) and Zakat (one of the pillars of faith in Islam) that helps people escape the poverty trap, promoting peace and protecting the environment such as goals 3, 5, 7, 11, 12, 13, 14, 15, and 16, which is consistent with human progeny. The fourth pillar is protection of intellect (aqal), and it is in alignment with SDG 1, 2, and 9 which facilitates access to healthy nourishment and quality education and makes children more productive in the future. The last pillar is protection of wealth (mal), and Zakat has inbuilt wealth transfer SDG 10 which can help generate economic activity,

This chapter is divided into several sections to describe essential ideas related to green banking. The first section is the introduction, and the second section covers the definition of green banking—banking activities that are concerned with the environment and provide financing to green business which is involved in environmental restoration. The third section represents the importance of green banking for successful implementation of the sustainable development goals. The fourth section discusses about the impact that green banking must create green business. The fifth section focuses on the relevance of Shariah in Islamic banking, SDGs, and green financing. Green banking being a new trend needs more attention from policymakers and regulators; specifically, the central banks can play a vital role to enhance green banking movement and to set up more and more green business. Beside banks, nonbanks financial institutions also should involve more in green financing to restore environmental balance and to preserve a livable condition for future generation. Bangladesh is a very good example of introducing and enforcing green banking policy and guidelines among the Southeast Asian countries. In fact, the reality of the country is that it is situated in an extremely risky zone based on a report published by a British consultancy firm [38]. Moreover, in terms of pollution, the country scored one of the top positions and vulnerable to climate change risk too [39]. Therefore, the country is serious about green banking and can be a very good example for others. To face the reality, when leaders are committed to implement SDGs by 2030, the involvement of financial sector in green banking is an essential condition to accelerate the process of implementation. Indeed, green financing would help attain few SDGs such as goal Nos. 7, 9, 11, 12, and 13. On the other hand, the features of green banking and objectives are very close to Maqasid Shariah. In general, conservation, reduce dependency on paper, increase online banking or financing, and environmental risk rating before granting financing to

#### *Green Banking DOI: http://dx.doi.org/10.5772/intechopen.93294*

*Banking and Finance*

and the banking industry must do its part [32].

*6.2.2 SDGs and Maqasid Shariah*

Al-Rum: 41, Allah (swt) the Almighty cautions human beings by announcing that unembellished destruction of the sea and land would come upon those who abuse the environment; therefore, not being able to treat the environment appropriately would be harmful. Hence, for ensuring ecological sustainability, it is crucial for everyone to count Islamic banks to resolutely play their roles. The governor debates that achieving environmentally friendly sustainability is the liability of everybody

Islamic teaching is always compatible with the benefit of ummah. The concept of sustainable development, which is a greatly discussed matter in modern time, is looking for the way out to guarantee development in a sustained way which is only likely to be achieved by adhering to the divine law of ethics. To conclude, Islamic banks are focusing on achieving Maqasid Shariah so does the green banking. By analyzing green banking policy and guidelines of Bangladesh, it is ascertained that green banking aims to also protect life, family, and property [33, 34]. Moreover, green business activities also resemble to attaining Maqasid Shariah [35].

The idea of a sustainable development model that is connected to religious values stands somewhat in opposition to the current model, which reflects a separation of religious ideology and public policy making. The sustainable development discourse has, however, acknowledged that the three pillars of sustainable development need to be completed by an ethical dimension at the level of popular values. The World Summit on Sustainable Development in Johannesburg (2002) added a short paragraph 6 to its Programme of Action: "We acknowledge the importance of ethics for sustainable development and, therefore, emphasize the need to consider ethics in the implementation of Agenda 21" [36]. Therefore, there is convergence of SDGs in general and the intention of climate management with the Maqasid Shariah. Maqasid Shariah should drive Islamic banking and finance is self-evident. Islamic economists invoke the framework of Maqasid Shariah to chart a new trajectory for Islamic finance. While many classical and contemporary Islamic scholars have discussed and elaborated upon the Maqasid Shariah framework, the Islamic Research and Training Institute (IRTI) has undertaken pioneering research that underlines the fact that many SDGs clearly align with Maqasid Shariah. The Maqasid Shariah-driven Islamic finance, therefore, would work towards achieving the SDGs. There is a growing realization that Islamic financial institutions should align their goals with the SDGs so that they would be able to protect and promote Maqasid Shariah. The SDGs are 17 in numbers. The next section will try to find the

convergence SDGs and the MS framework prescribed by Imam al-Ghazali. The UN Sustainable Development Summit was held in New York from September 25 to 27, 2015, for the adoption of an ambitious, bold, and universal sustainable development agenda that will end poverty and promote prosperity by 2030 while addressing the environment. The summit outcome document, entitled "Transforming our World: The 2030 Agenda for Sustainable Development," was agreed on by the 193 member states of the United Nations and includes 17 sustainable development goals and 169 targets. The 17 goals are No. 1 no poverty; No. 2 zero hunger; No. 3 good health and well-being; No. 4 quality education; No. 5 gender equality; No. 6 clean water and sanitation; No. 7 affordable and clean energy; No. 8 decent work and economic growth; No. 9 industry innovation and infrastructure; No. 10 reduced inequality; No. 11 sustainable cities and communities; No. 12 responsible consumption and production; No. 13 climate action; No. 14 life below water; No. 15 life on land; No. 16 peace, justice, and strong institutions; and No. 17

**98**

partnerships for the goals.

To appreciate the SDGs understanding, five Ps are vital; these are people, planet, prosperity, peace, and partnership. These five Ps are considered as elements of SDGs, and among them three are the pillars of SD—people, planet, and prosperity. The 2030 Agenda is indivisible; therefore, countries should avoid cherry picking goals and carefully assess the trade-offs across goals/targets. SDGs are very comprehensive, designed to achieve universal goals, agreed by world community in general, and have no direct conflicts with Islamic percepts. Maqasid Shariah is also very systematic and attempts to address human welfare and well-being in a comprehensive and organized way. The following paragraph is trying to map SDGs into Maqasid Shariah.

One of the first pillars of Imam al-Ghazali's Maqasid Shariah framework is protection of faith, and SDG goals 1, 2, 3, 6, and 10 focus on reducing vulnerability which in turn is believed to help strengthen their faith. The second pillar is protection of life (nafs), and goals 2, 3, 6, 8, and 11 in ensure healthy lives and promoting well-being for sustainable development. The third pillar is protection of progeny (nasl) and Zakat (one of the pillars of faith in Islam) that helps people escape the poverty trap, promoting peace and protecting the environment such as goals 3, 5, 7, 11, 12, 13, 14, 15, and 16, which is consistent with human progeny. The fourth pillar is protection of intellect (aqal), and it is in alignment with SDG 1, 2, and 9 which facilitates access to healthy nourishment and quality education and makes children more productive in the future. The last pillar is protection of wealth (mal), and Zakat has inbuilt wealth transfer SDG 10 which can help generate economic activity, SDG 8, and a social safety net, SDGs 1 and 3 [37].
